The 30-share index last quoted up by 577.97 points or 2.51 percent to 23,564.09 after moving in range of 23,622.64 - 23,197.67.

The NSE Nifty reclaimed the 7,100-mark by climbing 182.85 points, or 2.62 percent, at 7,163.80.

Brokers said a flurry of buying by investors in blue-chips available at an attractive levels amid a firming trend at other Asian markets, tracking weakened gains at the US markets, mainly influenced the sentiment.

Meanwhile, industrial production declined for the second month in a row, registering negative growth of 1.3 percent in December, while retail inflation in January rises marginally to 5.69 percent from 5.61 percent in December.

Among other Asian markets, Hong Kong was up three percent percent in late trade, with HSBC rising four percent after saying it would remain headquartered in Britain, rejecting a move to Hong Kong, despite concerns about increased regulation in the UK and a possible split from the EU.